Last paystub of 2019 has me short $3900 of salary!
January 25, 2020 6:02 PM Subscribe
Brought this up to my employer (also new owner of our company) who agreed that I was shorted. He also admitted that he bought the company knowing my wage and my salary agreement. He acted like he fully understood! Told me he would “make it right” on my next paycheck. Next paycheck ONLY corrected withholding, net pay etc. So it “made it right” for my first check of 2020...BUT did NOT make up the $3900 I am short for 2019. Is this ok? Can he really get away with this legally?
Am I a fool for thinking I got my point across and the shortage would be paid out to me? Especially because I had all the paperwork in hand and he waved me off from giving him copies because “he didn’t need them.”
I am feeling duped and it bothers me if he thinks I should just carry on and absorb the loss.
I am super uncomfortable with this kind of thing and was proud of myself for confronting him and the error in a calm and concise manner. Only to find out that his “we will make it right” line was TOTAL BS. Now what?
Help me know what to say and how to deal with this. He is rather intimidating and has a way of controlling the conversation. He has been out of town since I got my check, but will be back on Monday and I need to address this right away.
Am I a fool for thinking I got my point across and the shortage would be paid out to me? Especially because I had all the paperwork in hand and he waved me off from giving him copies because “he didn’t need them.”
I am feeling duped and it bothers me if he thinks I should just carry on and absorb the loss.
I am super uncomfortable with this kind of thing and was proud of myself for confronting him and the error in a calm and concise manner. Only to find out that his “we will make it right” line was TOTAL BS. Now what?
Help me know what to say and how to deal with this. He is rather intimidating and has a way of controlling the conversation. He has been out of town since I got my check, but will be back on Monday and I need to address this right away.
IANAL. Your state has a Labor Dept., who who can tell you what's legal. As far as I know, and I have done payroll and had employees, he has to pay you at the agreed on rate. Communicate by email, BCC an external account. It's good to have documentation. Scan the documents, make it clear what you're owed, email him the details. Be calm and act like you assume this is all a small paperwork issue. But keep records.
posted by theora55 at 6:13 PM on January 25, 2020 [8 favorites]
posted by theora55 at 6:13 PM on January 25, 2020 [8 favorites]
Google "payday law" + your state to find out how much time your company has to legally pay you your salary. (California example: "Compensation earned between the 1st and the 15th of the month must be paid no later than the 26th day of the same month. Compensation earned from the 16th of the month through the end of the month must be paid no later than the 10th day of the following month.")
Then google "wage theft" + your state. This is a big deal, and your state will have a department devoted to wage theft complaints. (California example: "Workers in California have the right to file a wage claim when their employers do not pay them the wages or benefits they are owed. A wage claim starts the process to collect on those unpaid wages or benefits. California’s labor laws protect all workers, regardless of immigration status.")
I would try exactly one time to speak assertively to your boss, though you could frame it as you being helpful: "As you know, Boss, the law requires me to be paid by (whatever state law is here). I don't want the company to get in trouble, so it's important that this error be corrected immediately. How can we make that happen?"
And then if he doesn't pay you, you have to be willing to file a wage theft claim.
My experience, slightly different than yours, but with money owed: as soon as I said "file a wage theft claim" the money was paid. Most employers are smart enough to know that they don't want to have to deal with the state labor department and they will be on the losing side of this case.
posted by BlahLaLa at 7:01 PM on January 25, 2020 [4 favorites]
Then google "wage theft" + your state. This is a big deal, and your state will have a department devoted to wage theft complaints. (California example: "Workers in California have the right to file a wage claim when their employers do not pay them the wages or benefits they are owed. A wage claim starts the process to collect on those unpaid wages or benefits. California’s labor laws protect all workers, regardless of immigration status.")
I would try exactly one time to speak assertively to your boss, though you could frame it as you being helpful: "As you know, Boss, the law requires me to be paid by (whatever state law is here). I don't want the company to get in trouble, so it's important that this error be corrected immediately. How can we make that happen?"
And then if he doesn't pay you, you have to be willing to file a wage theft claim.
My experience, slightly different than yours, but with money owed: as soon as I said "file a wage theft claim" the money was paid. Most employers are smart enough to know that they don't want to have to deal with the state labor department and they will be on the losing side of this case.
posted by BlahLaLa at 7:01 PM on January 25, 2020 [4 favorites]
Also, start looking for a new job, this does NOT bode well at all for you or for the company's future.
posted by praemunire at 8:48 PM on January 25, 2020 [12 favorites]
posted by praemunire at 8:48 PM on January 25, 2020 [12 favorites]
Just to confirm, because you mentioned the new paycheck only corrected withholding & net pay - the issue isn't that he took out $3900 more in taxes than you expected last year, is it? If it is, and you're in the US, then that's probably already been handed over to the government, and anything you're owed ought to come back as a refund when you do your taxes in April.
posted by cdefgfeadgagfe at 8:55 PM on January 25, 2020
posted by cdefgfeadgagfe at 8:55 PM on January 25, 2020
It sounds like the boss got it half right - fixed your pay for the next pay period but didn't take care of the missed funds from the December paycheck. Is there any chance it is an oversight or at least that it be worth acting as if it is an oversight? I would start by approaching him and letting him know that HR only fixed half the problem - the current paycheck was right but the company still owes you money you were paid in December and that needs to be fixed promptly.
New owner - give him a little slack. If it doesn't get fixed by next paycheck then yes, escalate by all means but based on the short version you presented here, I would leave open the possibility of mistake and not jump to the conclusion (yet) that he deliberately trying to dupe you and is hoping you will silently let him steal your wages.
posted by metahawk at 12:02 AM on January 26, 2020 [3 favorites]
New owner - give him a little slack. If it doesn't get fixed by next paycheck then yes, escalate by all means but based on the short version you presented here, I would leave open the possibility of mistake and not jump to the conclusion (yet) that he deliberately trying to dupe you and is hoping you will silently let him steal your wages.
posted by metahawk at 12:02 AM on January 26, 2020 [3 favorites]
Sounds like cash flow problems. Job hunt now. Set up any payment arrangement you can, except a deferred one or a long term one. Offer to take a company vehicle in trade if necessary.
The end of the year timing sounds especially bad. I would be highly nervous that he had actually paid his payroll taxes.
However he may be just trying to harass or intimidate you out of your job, so don't bolt without a place to go.
Check with payroll, whoever does that. They may have an explanation.
Check with your coworkers. If they were shorted too you all need to be at the office, but working at distance jobs for other companies while ostensibly doing the work you are being paid to do.
posted by Jane the Brown at 7:00 AM on January 26, 2020
The end of the year timing sounds especially bad. I would be highly nervous that he had actually paid his payroll taxes.
However he may be just trying to harass or intimidate you out of your job, so don't bolt without a place to go.
Check with payroll, whoever does that. They may have an explanation.
Check with your coworkers. If they were shorted too you all need to be at the office, but working at distance jobs for other companies while ostensibly doing the work you are being paid to do.
posted by Jane the Brown at 7:00 AM on January 26, 2020
"Thanks for getting my paychecks correct going forward, but I still need the missing $3900. Please issue me another check today and do not make me wait for the next paycycle."
Was this a onetime underpayment or were you being shorted a little bit all year? It depends on when he took over the business vs. when you started getting shorted. If the old owners weren't paying you correctly and the new guy just continued at the same rate, he deserves a lot more slack than if the first short check was after he took over the business. The first is an oversight and the second seems deliberate.
Do not let him start questioning why you need the money. It is your money and you deserve it. If he starts pushing back about why you need it, tell him your personal finances are not up for discussion - only your paycheck.
posted by soelo at 8:08 AM on January 26, 2020 [4 favorites]
Was this a onetime underpayment or were you being shorted a little bit all year? It depends on when he took over the business vs. when you started getting shorted. If the old owners weren't paying you correctly and the new guy just continued at the same rate, he deserves a lot more slack than if the first short check was after he took over the business. The first is an oversight and the second seems deliberate.
Do not let him start questioning why you need the money. It is your money and you deserve it. If he starts pushing back about why you need it, tell him your personal finances are not up for discussion - only your paycheck.
posted by soelo at 8:08 AM on January 26, 2020 [4 favorites]
Either your hourly/weekly rate was wrong all year, or some paychecks were lower. Look at your paystubs to figure this out.
For example my company lists my hourly rate on my paycheck even though I'm ostensibly salaried because a lot of things are based on that hourly rate. I believe they calculate it by yearly salary divided by 2080 (52 weeks x 40 hours). If you are paid in a different pay period adjust the math to figure out how you were shorted.
If you got a raise last year, that only counts for part of the year, so you have to figure out the math for that.
posted by TheAdamist at 8:46 AM on January 26, 2020 [3 favorites]
For example my company lists my hourly rate on my paycheck even though I'm ostensibly salaried because a lot of things are based on that hourly rate. I believe they calculate it by yearly salary divided by 2080 (52 weeks x 40 hours). If you are paid in a different pay period adjust the math to figure out how you were shorted.
If you got a raise last year, that only counts for part of the year, so you have to figure out the math for that.
posted by TheAdamist at 8:46 AM on January 26, 2020 [3 favorites]
Your wages are your property once they're earned and due to you, generally speaking. Renew the request, including the date you originally identified the error and made the request, and document it. Seek the advice of a plaintiff employment lawyer licensed in your state for advice on the specifics, if the public resources in your state (and sometimes also your locality) aren't helpful.
Be aware that with shady employers, either harassment intended to make you quit or even an outright retaliatory firing may be around the corner if you pursue them by external means, whether a regulator or a private attorney. And while you can pursue legal remedies for that as well, it's a risk to be aware of in terms of employment and income.
posted by snuffleupagus at 10:21 AM on January 26, 2020 [1 favorite]
Be aware that with shady employers, either harassment intended to make you quit or even an outright retaliatory firing may be around the corner if you pursue them by external means, whether a regulator or a private attorney. And while you can pursue legal remedies for that as well, it's a risk to be aware of in terms of employment and income.
posted by snuffleupagus at 10:21 AM on January 26, 2020 [1 favorite]
So, I'm not quite clear on whether this was a one-time underpayment (e.g. you were expecting a bonus) or whether you have been been being underpaid all year? If you were underpaid all year and only noticed at the end of the year, you might have trouble proving that you were supposed to be earning the other pay rate (unless you have written documentation of your pay), so I would not count on a lawyer being able to help you in this situation.
Regardless, I think you should go to your boss on Monday and say, "Hey, I appreciate you fixing the issues with my pay going forward, but you still owe me the $3900 you underpaid me in 2019. When can I expect you to take care of that?"
(And on the off chance it's not actually an underpayment but rather a problem with your tax withholding, don't wait until April to file your taxes! Get that refund right now!)
posted by mskyle at 11:54 AM on January 26, 2020
Regardless, I think you should go to your boss on Monday and say, "Hey, I appreciate you fixing the issues with my pay going forward, but you still owe me the $3900 you underpaid me in 2019. When can I expect you to take care of that?"
(And on the off chance it's not actually an underpayment but rather a problem with your tax withholding, don't wait until April to file your taxes! Get that refund right now!)
posted by mskyle at 11:54 AM on January 26, 2020
As others have said, it would help if you would explain a little more about how you wound up short -- e.g., were your checks short every pay period, was there too much tax withholding, something else? If this is about tax withholding (you say he fixed withholding), it may be that your recourse is to get a refund from the IRS.
If this is not about withholding, but rather about them paying you less than agreed, then your recourse is to file (or threaten to file) a wage claim, assuming another conversation does not fix it. In some states, wage claims have extra penalties (like treble damages and attorneys' fees) that can make them a real threat, especially to a smaller business. Also, in my state, you can file your wage claim against your employer and the owners of your employer, personally.
If you file (or threaten to file) a wage claim, I imagine your relationship with the new boss will be pretty strained, so you may need to consider whether the amount of money at issue is worth enough to you to counterbalance the risk/possibility that you will need a new job.
posted by Mid at 2:06 PM on January 26, 2020 [1 favorite]
If this is not about withholding, but rather about them paying you less than agreed, then your recourse is to file (or threaten to file) a wage claim, assuming another conversation does not fix it. In some states, wage claims have extra penalties (like treble damages and attorneys' fees) that can make them a real threat, especially to a smaller business. Also, in my state, you can file your wage claim against your employer and the owners of your employer, personally.
If you file (or threaten to file) a wage claim, I imagine your relationship with the new boss will be pretty strained, so you may need to consider whether the amount of money at issue is worth enough to you to counterbalance the risk/possibility that you will need a new job.
posted by Mid at 2:06 PM on January 26, 2020 [1 favorite]
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